Newgen Software Technologies Intrinsic Value

NEWGEN • Information Technology
Current Stock Price
₹802.55
Primary Intrinsic Value
₹279.36
Market Cap
₹112.4K Cr
-70.0% Downside
Median Value
₹240.76
Value Range
₹161 - ₹401
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

NEWGEN Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹279.36 ₹223.49 - ₹335.23 -65.2% EPS: ₹23.28, Sector P/E: 12x
Book Value Method asset ₹160.51 ₹144.46 - ₹176.56 -80.0% Book Value/Share: ₹108.29, P/B: 1.0x
Revenue Multiple Method revenue ₹240.76 ₹216.68 - ₹264.84 -70.0% Revenue/Share: ₹118.29, P/S: 0.8x
EBITDA Multiple Method earnings ₹321.02 ₹288.92 - ₹353.12 -60.0% EBITDA: ₹464.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹321.02 ₹256.82 - ₹385.22 -60.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹240.76 ₹216.68 - ₹264.84 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹240.76 ₹216.68 - ₹264.84 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹401.27 ₹361.14 - ₹441.40 -50.0% ROE: 21.6%, P/E Multiple: 16x
Graham Defensive Method conservative ₹240.76 ₹216.68 - ₹264.84 -70.0% EPS: ₹23.28, BVPS: ₹108.29
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check NEWGEN share price latest .

Valuation Comparison Chart

NEWGEN Intrinsic Value Analysis

What is the intrinsic value of NEWGEN?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Newgen Software Technologies (NEWGEN) is ₹240.76 (median value). With the current market price of ₹802.55, this represents a -70.0% variance from our estimated fair value.

The valuation range spans from ₹160.51 to ₹401.27, indicating ₹160.51 - ₹401.27.

Is NEWGEN undervalued or overvalued?

Based on our multi-method analysis, Newgen Software Technologies (NEWGEN) appears to be trading above calculated value by approximately 70.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 17.17 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.35 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 21.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 26.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.81x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹215 Cr ₹131 Cr Positive Free Cash Flow 8/10
March 2024 ₹281 Cr ₹173 Cr Positive Free Cash Flow 8/10
March 2023 ₹136 Cr ₹92 Cr Positive Free Cash Flow 8/10
March 2022 ₹143 Cr ₹104 Cr Positive Free Cash Flow 8/10
March 2021 ₹216 Cr ₹145 Cr Positive Free Cash Flow 8/10